SAFTU hits out at some retailers as high food prices continue to threaten food security

JOHANNESBURG - The South African Federation of Trade Unions (SAFTU) has hit out at some retailers as high food prices continue to threaten food security in the country.

SAFTU’s latest criticism followed the release of the Competition Commission’s Essential Food Pricing Monitoring report last week.

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It said that despite the recent easing of overall inflation and food inflation, South African households were still grappling with high costs for basic goods. This includes eggs, bread, cooking oil, and tinned fish.

The commission said retail prices are taking longer to fall after shooting up dramatically due to the COVID-19 pandemic, recent flooding, and the avian flu outbreak, in what’s known as the rocket and feather effect.

SAFTU’s Mogoshadi Maserumule has accused producers and retailers of being heavy-handed in their pricing.

"South African retailers have higher profit margins than their international counterparts, upwards of 6% to 8% higher. The profitability of the South African retailers is reflected in the exorbitant earnings of the retail executives."